TAL Education Group Inc. (NASDAQ: TAL) stock gained by 3.04% at last close, whereas the TAL stock price plunged by 5.68% in the after-hours trading session. In China, the TAL Education Group is a significant provider of K-12 after-school tutoring sessions. The term “TAL” stands for “Tomorrow Advancing Life,” and it symbolizes their goal of providing excellent opportunities to learn for Chinese students via high-quality teaching and material.

TAL stock’ Update

In reaction to recent policy developments about the after-school tutoring sessions, TAL Education Group issued an update on the Company’s business activities. The General Offices of the CPC Central Committee and the General Office of the State Council published Opinions on Further Alleviating the Burden of Homework and After-School Tutoring for Students in Compulsory Education in July 2021 (the “Opinion”), as well as the making and implementation of rules, regulations, and measures enforced by the relevant authority.

Towards the end of this year 2021, the Company wants to stop offering academic topics to pupils in kindergarten through grade nine in mainland China, in accordance with the Opinion and relevant rules, regulations, and measures. The Company expects the discontinuance to have a significant negative impact on profits in the fiscal year ending February 28, 2022, and the following years. Revenues from offering K9 Academic AST Services accounted for a considerable majority of the Company’s overall revenues in the fiscal year ending February 28, 2021.

Furthermore,

TAL will keep operating and building the part of its business that is not tied to K9 Academic AST Services by utilizing its cutting-edge education technology, high-quality content, and vast experience. TAL will also look into new ways that can provide education services while adhering to all applicable norms and regulations.

In order to ensure compliance with the policy objectives in the Opinion and any related implementation rules, regulations, and measures, the Company will actively seek assistance from and work with government officials in various provinces and municipalities throughout China. As needed, the Company will modify its business activities and provide updates to its shareholders.